Professional Services KPIs Fundamentals, Definitions, Calculations, Examples

According to Consultancy.org, the global consulting market represents more than $250 billion (2016). Bloomberg BNA reports 10% projected growth in 2018. It is relatively easy for a group of professionals to enter this market, but growing consulting companies can be very challenging. Founders, presidents, and officers must focus on performance management to achieve success.

In 2017, SPI Research (ten years of professional services benchmarking) created a comprehensive report with trend analysis for 200 key performance indicators (KPIs) for Professional Service Organizations (PSOs). The article in our knowledge base Metricopedia lists the 10 fundamental performance metrics for consulting firms:

 

  1. Revenue
  2. Expenses
  3. Profit
  4. Profit margin
  5. Capacity
  6. Billable hours
  7. Internal hours
  8. Utilization
  9. Headcount
  10. Employee turnover